CREATIVE REAL ESTATE STRATEGIES FOR SELLING PROPERTIES AT FULL PRICE LEX LEVINRAD
The larger the deposit the buyer puts down, the less likelihood they are to walk away from the house and the
more likely they are to take better care of the house. We offer our buyers, seller financing with 20% down and
an annual interest of 9.75% on the mortgage balance. I structure the mortgage payments as interest only five
year balloon mortgages. It will usually take a period of up to 4 years for someone to repair their credit to the
point where they can refinance their loan with us and pay off the loan with a conventional mortgage, which is
why we use the 5 year term.
Here Is An Example Of How This Works:
Purchase:
Your purchase price
$50,000
Repairs to fix the house
$15,000
Total Cost Including Repairs
$65,000
Sale
Sales Price to New Buyer
$100,000
Buyers Down Payment
$20,000
Buyers Monthly Interest Payment
(9.75%)
$650
Buyers Monthly Taxes and Insurance
$300
Buyers Total Monthly Payment
$950
*Equivalent market rents are $1,250, so the buyer owns a home for less than renting*
Structuring the deal like this has numero W2&V